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IHE vs. VHT
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IHE vs. VHT

Last updated Jun 5, 2026

IHE (iShares U.S. Pharmaceuticals ETF) and VHT (Vanguard Health Care ETF) are both Health & Biotech Equities funds - IHE tracks the Dow Jones U.S. Select Pharmaceuticals Index while VHT tracks the MSCI US Investable Market Health Care 25/50 Index. Both are passively managed. Over the past 10 years, IHE returned 7.97%/yr vs 9.50%/yr for VHT. Their correlation of 0.88 suggests significant overlap in exposure. IHE charges 0.42%/yr vs 0.09%/yr for VHT.

Performance

IHE vs. VHT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Pharmaceuticals ETF (IHE) and Vanguard Health Care ETF (VHT). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, IHE achieves a 9.33% return, which is significantly higher than VHT's -1.19% return. Over the past 10 years, IHE has underperformed VHT with an annualized return of 7.97%, while VHT has yielded a comparatively higher 9.50% annualized return.

IHE

1D
2.69%
1M
3.48%
YTD
9.33%
6M
12.42%
1Y
43.59%
3Y*
18.33%
5Y*
10.57%
10Y*
7.97%

VHT

1D
2.95%
1M
4.12%
YTD
-1.19%
6M
-0.78%
1Y
17.48%
3Y*
7.08%
5Y*
5.12%
10Y*
9.50%
*Multi-year figures are annualized to reflect compound growth (CAGR)

IHE vs. VHT - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
IHE
iShares U.S. Pharmaceuticals ETF		9.33%31.69%8.13%1.06%-4.87%13.07%13.66%15.47%-7.76%10.64%
VHT
Vanguard Health Care ETF		-1.19%15.46%2.66%2.52%-5.60%20.57%18.29%21.87%5.58%23.26%

Correlation

The correlation between IHE and VHT is 0.87, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.87

Correlation (3Y)
Calculated over the trailing 3-year period

0.85

Correlation (5Y)
Calculated over the trailing 5-year period

0.86

Correlation (10Y)
Calculated over the trailing 10-year period

0.86

Correlation (All Time)
Calculated using the full available price history since May 8, 2006

0.88

The correlation between IHE and VHT has been stable across timeframes, ranging from 0.85 to 0.88 - a consistent structural relationship.

IHE vs. VHT - Sectors Allocation Comparison

Sectors
IHE
VHT

Healthcare

100.0%
100.0%

Basic Materials

-

-

Communication Services

-

-

Consumer Cyclical

-

-

Consumer Defensive

-

-

Energy

-

-

Financial Services

-

0.0%

Industrials

-

0.0%

Real Estate

-

-

Technology

-

0.0%

Utilities

-

-

Healthcare

IHE
100.0%
VHT
100.0%

Basic Materials

IHE

-

VHT

-

Communication Services

IHE

-

VHT

-

Consumer Cyclical

IHE

-

VHT

-

Consumer Defensive

IHE

-

VHT

-

Energy

IHE

-

VHT

-

Financial Services

IHE

-

VHT
0.0%

Industrials

IHE

-

VHT
0.0%

Real Estate

IHE

-

VHT

-

Technology

IHE

-

VHT
0.0%

Utilities

IHE

-

VHT

-

Compare stocks, funds, or ETFs

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iShares U.S. Pharmaceuticals ETF

Vanguard Health Care ETF

Often compared with IHE:
IHE vs. PPHIHE vs. XPHIHE vs. XLVIHE vs. VYMIHE vs. PJPIHE vs. IAKIHE vs. BBP
Often compared with VHT:
VHT vs. XLVVHT vs. VGHCXVHT vs. VOOVHT vs. VGHAXVHT vs. FHLCVHT vs. IXJVHT vs. IYH

Return for Risk

IHE vs. VHT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
IHE
IHE Risk / Return Rank: 8181
Overall Rank
IHE Sharpe Ratio Rank: 7979
Sharpe Ratio Rank
IHE Sortino Ratio Rank: 8383
Sortino Ratio Rank
IHE Omega Ratio Rank: 7373
Omega Ratio Rank
IHE Calmar Ratio Rank: 8888
Calmar Ratio Rank
IHE Martin Ratio Rank: 8080
Martin Ratio Rank
VHT
VHT Risk / Return Rank: 3434
Overall Rank
VHT Sharpe Ratio Rank: 3434
Sharpe Ratio Rank
VHT Sortino Ratio Rank: 3737
Sortino Ratio Rank
VHT Omega Ratio Rank: 3232
Omega Ratio Rank
VHT Calmar Ratio Rank: 3535
Calmar Ratio Rank
VHT Martin Ratio Rank: 3030
Martin Ratio Rank
The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

IHE vs. VHT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Pharmaceuticals ETF (IHE) and Vanguard Health Care ETF (VHT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

IHEVHTDifference
Sharpe ratioReturn per unit of total volatility
2.54
1.20

+1.34

Sortino ratioReturn per unit of downside risk
3.67
1.87

+1.80

Omega ratioGain probability vs. loss probability

1.43

1.21

+0.22

Calmar ratioReturn relative to maximum drawdown

5.17

1.69

+3.48

Martin ratioReturn relative to average drawdown

15.58

4.22

+11.36

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IHE vs. VHT - Sharpe Ratio Comparison

The current IHE Sharpe Ratio is 2.54, which is higher than the VHT Sharpe Ratio of 1.20. The chart below compares the historical Sharpe Ratios of IHE and VHT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

IHEVHTDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.54

1.20

+1.34

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.65

0.34

+0.31

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.44

0.56

-0.12

Sharpe Ratio (All Time)

Calculated using the full available price history

0.51

0.57

-0.05

Drawdowns

IHE vs. VHT - Drawdown Comparison

The maximum IHE drawdown since its inception was -38.20%, roughly equal to the maximum VHT drawdown of -39.12%. Use the drawdown chart below to compare losses from any high point for IHE and VHT.

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Drawdown Indicators

IHEVHTDifference

Max Drawdown

Largest peak-to-trough decline

-38.20%

-39.12%

+0.92%

Max Drawdown (1Y)

Largest decline over 1 year

-8.47%

-10.40%

+1.93%

Max Drawdown (3Y)

Largest decline over 3 years

-15.92%

-16.91%

+0.99%

Max Drawdown (5Y)

Largest decline over 5 years

-16.03%

-17.71%

+1.68%

Max Drawdown (10Y)

Largest decline over 10 years

-29.59%

-28.85%

-0.74%

Current Drawdown

Current decline from peak

-0.18%

-4.32%

+4.14%

Average Drawdown

Average peak-to-trough decline

-7.92%

-5.99%

-1.93%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.81%

4.15%

-1.34%

Volatility

IHE vs. VHT - Volatility Comparison

iShares U.S. Pharmaceuticals ETF (IHE) has a higher volatility of 6.04% compared to Vanguard Health Care ETF (VHT) at 4.97%. This indicates that IHE's price experiences larger fluctuations and is considered to be riskier than VHT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

IHEVHTDifference

Volatility (1M)

Calculated over the trailing 1-month period

6.04%

4.97%

+1.07%

Volatility (6M)

Calculated over the trailing 6-month period

12.70%

10.48%

+2.22%

Volatility (1Y)

Calculated over the trailing 1-year period

17.26%

14.63%

+2.63%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

16.28%

15.02%

+1.26%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

18.07%

16.96%

+1.11%

IHE vs. VHT - Expense Ratio Comparison

IHE has a 0.42% expense ratio, which is higher than VHT's 0.09% expense ratio.

Dividends

IHE vs. VHT - Dividend Comparison

IHE's dividend yield for the trailing twelve months is around 1.61%, less than VHT's 1.66% yield.

PositionTTM20252024202320222021202020192018201720162015
IHE
iShares U.S. Pharmaceuticals ETF		1.61%1.76%1.73%1.39%2.01%1.49%1.19%1.40%1.25%1.36%0.92%1.93%
VHT
Vanguard Health Care ETF		1.66%1.61%1.53%1.36%1.33%1.14%1.21%1.89%1.38%1.31%1.45%1.22%

Frequently Asked Questions

IHE and VHT have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

IHE has higher volatility (6.04%) compared to VHT (4.97%). In terms of maximum drawdown, IHE dropped -38.20% vs VHT's -39.12%.

On 10-year performance, VHT leads with 9.50% vs 7.97% for IHE. On fees, VHT is cheaper at 0.09% per year. On volatility, VHT has been the lower-risk option at 4.97%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, VHT has performed better with a 9.50% return vs 7.97%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VHT is cheaper with a 0.09% expense ratio, compared with 0.42% for IHE.

VHT has the higher dividend yield at 1.66%, compared with 1.61% for IHE.

IHE tracks Dow Jones U.S. Select Pharmaceuticals Index, while VHT tracks MSCI US Investable Market Health Care 25/50 Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.42% for IHE and 0.09% for VHT.

IHE currently has the higher Sharpe Ratio (2.54 vs 1.20), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.

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